Seven Charged With Inside Trading

(CN) - Two mergers and acquisitions specialists fed inside information to families and friends, who made more than $11.6 million from it, the SEC says in Manhattan Federal Court. Nicos Stephanou at UBS Investment Bank and Ramesh Chakrapani at Blackstone Advisory Services are charged with helping cronies make millions in three corporate buyouts - including nearly $8 million from the January 2006 acquisition of Albertson's.

Stephanou is accused of feeding information about the Albertson's deal to his father and four of his friends, who netted almost $8 million in profits and avoided trading losses. Seven people are charged in the federal complaint.

Stephanou and Chakrapani, both of the United Kingdom, also are charged with trading on inside information about the acquisitions of ElkCorp and National Health Investors, bringing profits of more than $300,000 for Stephanou's family and friends.

The SEC filed a related complaint against Chakrapani In January, alleging he made $3.6 million in illegal profits from a tip on the Albertson's acquisition.

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